Answer:
net revenue tends to increase.
Explanation:
unresponsive to changes in price of gasoline indicates that there will not be any impact on demand of gasoline whatever may be the change in the price.
Hence if gas station owner increases the price of gas, demand will remain same. Therefore, there will net rise in revenue for gas station.
Actually in such cases profit margin also increases as there is not any increase in production cost, per unit profit will increase as there is increase in per unit selling price. Hence it can be also concluded that net profit for gas station owner will also increase
Answer:
18.84%
Explanation:
the flotation adjusted cost of new common stock = [expected dividend / (net proceeds from stock issuance)] + expected growth rate
- expected dividend = $2.03
- net proceeds from stock issuance = $22.35 x (1 - flotation costs) = $22.35 x 0.9625 = $21.5119
- expected growth rate = 9.4%
the flotation adjusted cost of new common stock = [$2.03 / $21.5119] + 9.4% = 9.44% + 9.4% = 18.84%
Answer:
Cognitive dissonance
Explanation:
The cognitive dissonance is composed by the believes, concepts, emotions and values of a person. The individual will try always to act to have a perfect equilibrium between actions, values, believes and any religious concept. As an example if you think that steal is bad you won't steal
Answer:
Accounting entity concept:
The basic idea behind this concept is that business and the owner are two different entities. Their transactions are to be recorded separately.
Going concern concept:
The concept is to have a view that the company is going to stay solvent in the future. That is we will have another accounting year in the future unless and otherwise we have evidence to the contrary.
Cost-benefit constraint:
It limits the amount of time to research the cost of an event if its benefits outweighs. In case of an immaterial event if its cost outweighs the benefits then that event can be forgone.
Expense recognition (matching principle):
The matching principle states that all the expenses are to be recorded based on the year they have been incurred rather than on the time they are paid.
Materiality constraint:
It states that any event that changes or effects the decision making of the user of financial statement should be recorded and vice versa.
Revenue recognition principle:
It states that the revenue is to be recorded in the period in which it has been incurred instead when it is collected. Accrual basis gives a more clear picture of the performance of the company.
Full disclosure principle:
It requires to disclose any information to be mentioned in the foot notes of the financial statements of the company that might affect the user of financial statement. This helps in identifying the methods used for accounting practices and any event that might effect the organisations future existence.
Cost principle:
To record the transactions based on their historical costs rather than making adjustments for fluctuations in market place.
Answer:
Option (D) is correct.
Explanation:
There is a change in the value of the dollar with the change in the value or purchasing power of the other nation's currency. This means that there is a direct or positive relationship between the value of the dollar and the value of the other nation's currency. It is known as the exchange rate. Exchange rate is the rate at which goods are being traded between the nations.
